UBER - Uber Technologies Stock: Bear vs. Bull
Uber Technologies ' (NYSE: UBER) stock price plunged 10% on Oct. 11 after the U.S. Labor Department unveiled a new proposal that will force employers to reclassify some independent contractors -- including janitors, construction workers, delivery workers, and ride-share drivers -- as full-time employees. Labor Secretary Marty Walsh said that misclassification "deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages."
Uber, Lyft , DoorDash , and other gig economy companies had previously faced a similar assembly bill (AB5) in California, which they collectively countered with a ballot initiative called Proposition 22. Prop 22 was approved by the state's voters in late 2020 but subsequently ruled unconstitutional and unenforceable by a court in August 2021. Uber and its industry peers are appealing that ruling.
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Uber Technologies Stock: Bear vs. Bull